Schedule KRCC-B: Recipient’s Share Of Capital Credit For Business Entities, Including Trusts (Revision)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule KRCC-B calculates a business entity or trust recipient's Alabama tax liability generated by a qualifying project and the capital credit eligible to offset that liability. It reports the recipient's share of project income and available capital credit.
Who files this form
Schedule KRCC-B is for business entities, including trusts, that receive a share of capital credit. It calculates the recipient’s Alabama tax liability generated by the qualifying project.
Complete a separate Schedule KRCC-B for each project. Do not use this schedule if you are the project entity.
What you'll need
Have the following ready:
- Form K-RCC received from the distributing entity. You will use Part III, line 3 for your share of project income and Part III, line 5 for your share of available capital credit.
- Your Alabama income tax return for income and tax liability figures.
- Your recipient name and FEIN, project number, project entity name, project’s placed-in-service date, and distributing entity name and FEIN.
If you choose the with/without method, you must prepare two federal returns and two Alabama returns through the tax liability line: one of each including project income and a second excluding the project income in Alabama. Keep the second returns for audit purposes.
How to file
Attach both Form K-RCC, as received from the distributing entity, and Schedule KRCC-B to your income tax return.
If you use the allocation method, complete Part IV to determine the Alabama tax liability generated by project income, then enter that result in Part III, line 2.
If you use the with/without method, the federal return to be filed with the Internal Revenue Service and the Alabama return to be filed with the Alabama Department of Revenue should include project income. Do not file the second returns with those returns; keep them for audit purposes.
The form does not provide a mailing address or e-filing instructions.
Common mistakes
- Using Schedule KRCC-B when the taxpayer is the project entity. The form says not to do this.
- Failing to complete a separate schedule for each project.
- Forgetting to attach both Form K-RCC and Schedule KRCC-B to the income tax return.
- Completing Part IV when the allocation method is not being used. Part IV is only for that method.
- Filing the second, without-project-income returns under the with/without method. Keep those returns for audit purposes instead.
Questions people ask
How much capital credit can I apply to my tax liability?
Enter the smaller of Part III, line 2, your Alabama tax liability generated by project income, and Part III, line 3, your share of available capital credit, on line 4.
How does the allocation method work?
In Part IV, divide your share of Alabama project income by your total income. If project income is greater than total income, enter 100%. Multiply that percentage by your Alabama tax liability and carry the result to Part III, line 2.
What income figure goes on Part IV, line 2?
Use the total income from your Alabama income tax return. A C corporation uses Alabama income before the federal income tax deduction. A fiduciary or estate adds Alabama taxable income and total ESBT income.
What does the with/without method compare?
It compares returns including project income with second returns excluding project income in Alabama. First calculate the federal income tax deduction related to the project, then use the applicable deductions on the Alabama returns. The difference in Alabama tax liability is the liability generated by the project income. The form provides separate calculations for members of consolidated-return groups.